An Empirical Study Of The Impact Of Government Subsidies On Corporate Performance

Under the current socialist market economic system in China,the government still has greater control over resource allocation.As an intervention and policy tool,government subsidies will also have an impact on the production and operation activities of enterprises.Then we can't help thinking: Will the government's subsidy behavior affect the fulfillment of corporate performance? If this effect exists,then the subsidy is affecting corporate performance through what channels and mechanisms? And what are the differences in the impact of the company at different stages of the life cycle? Therefore,this paper attempts to study the direct impact of government subsidies on corporate performance and the possible indirect impact of financial mechanism channels,scale mechanism channels and innovation mechanism channels on corporate performance.At the same time,this paper also explores the differences in the impact of government subsidies at different stages of the company's life cycle.This paper uses theoretical analysis and empirical research,quantitative and qualitative methods to study the impact of government subsidies on corporate performance.On the basis of summarizing the previous studies,this paper elaborates on the related theories of government subsidies.Based on the national conditions,this paper constructs a measurement system of corporate performance,determines the comprehensive index of enterprise life cycle division,and then puts forward the research hypothesis of this paper;Then the paper further explains the relevant variables and measurement methods.At the same time,the research model of this paper is constructed and the hypothesis test is expounded.Based on the research hypothesis and model design,this paper uses the fixed effect model of panel data to perform multiple linear regression,and uses bootstrap method to test the mediating effect to draw the following conclusions: Generally speaking,government subsidies have a positive effect on the fulfillment of corporate performance;government subsidies affect the fulfillment of corporate performance through the indirect channels of enterprise scale mechanism,and the channels of corporate financial mechanism and innovation mechanism have not played a role;There are differences in the effects of government subsidies on the implementation of corporate performance at different stages of the life cycle.Subsidies for companies in growth and maturity to produce a promoting effect,while companies in a recession did not produce a corresponding effect.This paper studies the direct and indirect effects of government subsidies oncorporate performance,which not only enriches the relevant research results in this field,but also has certain reference significance for the decision-making of government departments to issue subsidies and the development of corporate performance assessment mechanism.Admittedly,the empirical research in this paper still belongs to the category of linear regression,and the analysis method is relatively shallow,so it can be further optimized and improved in the future.